Indian Hotels Company Limited (IHCL), backed by the Tata Group, has announced an impressive second-quarter performance for FY2024-25, with net profit surging 226% year-on-year (YoY) to ₹583 crore. Revenue also climbed by 27.4%, reaching ₹1826 crore.

The company attributed this strong growth to strategic initiatives, including record hotel signings and expansions. Puneet Chhatwal, Managing Director and CEO, highlighted that IHCL has signed 42 new hotels, expanding its portfolio to an industry-leading 350 properties. The company also met its goal of opening two hotels per month, with 14 new properties launched this fiscal year.

Additionally, IHCL is set to take over the management of The Claridges, New Delhi, under a hotel operating agreement starting April 2025, further strengthening its footprint in the capital.

H1 Performance and Expansion

For the first half of FY2024-25, IHCL reported revenue of ₹3376 crore, marking a 16.4% YoY growth. Profit for the same period more than doubled, rising 103% to ₹843 crore.

In another key development, IHCL entered into agreements to acquire a majority shareholding in the Tree of Life brand, enhancing its portfolio with boutique leisure properties.

Financial Highlights

Ankur Dalwani, Executive Vice President and CFO, noted the company’s robust financial position with a consolidated gross cash of ₹2460 crore as of September 30, 2024. The consolidation of TajSATS into IHCL’s portfolio contributed to a 48% YoY growth in Consolidated Profit After Tax (PAT) to ₹247 crore, excluding an exceptional item of ₹307 crore related to the integration.

Looking Ahead

With continued expansions and acquisitions, IHCL is well-positioned to sustain its growth trajectory. The company’s strategic focus on operational efficiency and portfolio diversification promises an exciting future in the hospitality sector.